The financial crisis of 2008 seems like such a long time ago. During the crisis, we saw the collapse of Lehman Brothers, bank bailouts and forced mergers, massive federal stimulus, and extraordinary Federal Reserve (Fed) policy. We experienced near unprecedented stock market volatility when daily stock market moves of 5% or more were not uncommon. Despite these extreme conditions, one of the greatest six-year bull markets emerged from this crisis.

Now, we are celebrating another (belated) birthday of the bull market that began on March 9, 2009. (A bull market is defined as a prolonged period of stock market gains without a 20% or more decline.) Not only has this bull market for stocks lasted a long time from a historical perspective (it is the third-longest since World War II), it has also been the strongest six-year-old bull.

Oil prices may be turning into the Grinch of this holiday season. Oil has dropped by more than 40% in just the past three months and contributed to volatile stock markets. LPL Financial Research does not believe the sharp drop in oil prices is a sign of significant deterioration in the U.S. or global economy. The stunning collapse does have wide-ranging impacts on the economy and markets, but LPL Research believes the risks associated with low oil prices can be manageable and that the positives outweigh the negatives.

Lower oil prices benefit the U.S. economy in a number of ways. By saving U.S. consumers tens of billions of dollars at the gas pump and in home energy bills, it is estimated that the $50-plus drop in the price of oil since June 2014 boosts U.S. gross domestic product by roughly 0.5%. That is significant, but it is important to keep in mind that U.S. consumer spending totals $12 trillion per year, and that consumers spend an average of just 4% of their incomes on energy. Still, this is a benefit to consumers, especially for those at lower income levels who spend a bigger portion of their incomes on energy.

We aren’t crazy ALL the time. Just in the summer, when it is time to travel. And maybe in the springtime, when we start to plan our travel. We do things that no one in their right mind would ever think of doing. I promise, we don’t try to be crazy. It just sort of happens.

It all started when the kids were little (really little) and we took them all to Hawaii. Seriously, who takes three kids aged 5, 3 and 11 months, to Hawaii? We do. And guess what? It all turned out really well. We had an amazing time. Which just got us going.

Another time we flew to Denver and decided to rent a 31 foot RV and camp in the Rocky Mountains for ten days. The fact that I had never been camping for more than one night didn’t stop us. Neither did the fact that Eric had never, ever driven an RV before. Why not drive (and back up) a 31 foot RV at 15,000 feet? I mean, how bad can it be? It wasn’t bad at all. We perfected the art of praying while driving with our eyes wide open and had one of our best family vacations EVER. And I only showered three times in eleven days. Can you believe that? I can’t.

At this year’s halfway point, we offer the LPL Financial Research Mid-Year Outlook 2014: Investor’s Almanac Field Notes containing key observations and updates to our outlook for 2014. Similar to a farming almanac, our Investor’s Almanac is a publication containing a guide to patterns, tendencies, and seasonal observations important to growing. The goal of farming is not merely to grow crops, but to sustain living things — investing shares the same goal.

As we expected, markets in 2014 have been less influenced by politics and policymakers than in 2013 and more dependent upon growth. Growth is an essential characteristic of all living things, and in 2014, growth is vital to our

August is a time when many of us plan vacations with family and friends in order to reconnect. The recently released report on second quarter economic growth, as measured by gross domestic product (GDP), shows the U.S. economy is also taking the time to “reconnect” this summer, with the economy’s underlying fundamental strength reconnecting with economic growth after weather-related weakness in the first quarter.

Inflation-adjusted, or real, GDP rose at a 4.0% annualized rate in the second quarter of 2014, and revised data show GDP growth was 3.5% or higher in three of the past four quarters dating back to the third quarter of 2013. The exception was the 2.1% decline in GDP in the first quarter of 2014, which now looks even more like a weather-related outlier, resolving the disconnect between underlying economic strength and economic growth. GDP is the broadest measure of the nation’s economic output, and the report is closely watched. The data released so far for the third

In the process of raising three kids, there are many lessons I find they teach me along the way. I love how inquisitive they are. There have been moments when we have been together that they want to know “how” something works. Many times I’m not sure myself, but I always do my best to provide an answer. I can’t tell you how many times that the next question they ask is, “Why does it work this way?”

Unfortunately the older we get, I think we stop asking “Why?” If you are going to build a life that can ultimately leave a legacy, you can’t afford to only ask “How?” The majority of people who come to my office simply want to know “how” to do something. Most have never asked the question “why” they may want to do something and if they have, the answer is usually rather shallow. [Read more…]

Spring is a time of renewal. As this wonderful season approaches (and hopefully brings milder weather), we believe the stage is set for renewed growth in the U.S. economy.

The seeds of growth in the economy have taken root underneath all the snow and ice. Several recent data points underlie our optimism. The latest edition of the Federal Reserve’s Beige Book, which is essentially a “window on main street,” provided a positive assessment of the U.S. economy and still characterized growth as “modest to moderate,” despite significant weather impacts. In fact, the word “weather” showed up 119 times in the report, far more than it appeared when SuperStorm Sandy struck in October 2012. Many Beige Book comments pointed to optimism once the weather normalizes. [Read more…]

As you are aware, our mission statement at DWS is “Doing good for you, so you can do good for others.” I think it’s important that we focus on the places we can make a difference and be a part of the changes we want to see in the world (borrowed from Mahatma Gandhi).

Having said that, I think it is also important to look back and realize the success that has been achieved by those who went before us. What is most amazing is the success in building “health and wealth” in the world since 1970. There were two pieces of information that reinforced these successes in my life recently and I wanted to share them with you. [Read more…]

It’s not often that we can gain investment insights from an 18-year-old wunderkind.

Many of us marveled at the performance of American Mikaela Shiffrin at the Sochi Winter Olympics, where she became the youngest Olympic slalom champion. What makes Shiffrin remarkable is not only her success, but also her approach to the sport. Unlike many of her peers, while training she focused more on technique and practice — the discipline of ski racing — rather than on competing. When Shiffrin lost footing and became airborne on the course, she was able to regain her position quickly as she had practiced her recovery many times before. Throughout all of her training, she took the long-term view. [Read more…]

Are you as easily distracted as I am? What? I’m sorry, I was thinking of something else.

Here at Dunavant Wealth Strategies, I get to work with many different families who are in different places. What I have found consistently is that we are all easily distracted. When I’m distracted, I often take the path of least resistance just to get a task completed.

What has struck me the most over the last 14 years of working with families is how taking the path of least resistance can cost a lot of us longer term financial success. [Read more…]

LATEST TWEETS

Categories

Dunavant Wealth Strategies

E Six Thirteen, LLC doing business as Dunavant Wealth Strategies, is a Registered Investment Advisor (“RIA”), located in the State of Louisiana that provides planning and advisory services for clients nationally.Privacy Policy | Disclosure Statement